There are at least three excellent reasons for believing that the Fourways area, roughly 20 km north of the Johannesburg CBD and 10 km from Sandton City, can be seen as a precinct with significant growth ahead of it.
This was said last week by Steven Goosen, the Rawson Property Group’s franchisee for the Greater Fourways area. The sales territory covered by Goosen and his seven person team covers Broadacres, Craigavon, Magaliesburg and Lonehill.
“The first reason for confidence,” said Goosen, “is that demand for homes here now far exceeds supply. After several years in which sales prices were below the previous high levels of 2007/2008, they are now back to those levels and, by my estimation, are rising at 3,5% per annum. This rate, I believe, will inevitably increase in response to the exceptionally strong demand.”
The second reason for confidence, said Goosen, is that developers are again active in the area. At least half a dozen new developments are now going ahead and the largest of these is Steyn City, which is sited on the banks of the Jukskei River and will cover 2,000 acres. This will, it is said, provide 8,000 housing units. These projects, said Goosen, will alleviate the current serious stock shortage situation.
A third reason for confidence, said Goosen, is that Fourways is becoming a ‘mini Sandton-like’ commercial hub – the area is steadily gaining in popularity for decentralized business premises. Like Sandton itself, Fourways is witnessing a trend among businesses to abandon their former CBD or CBD periphery premises in favour of those that offer shorter commuting distances and a more pleasant environment.
Roughly half the residential units in Greater Fourways are sectional title. Although these can be priced at R3 million or above, the big demand is for units in the R600,000 to R900,000 bracket – closely followed by demand for units up to R1,3 million.
In the freehold market, said Goosen, perhaps 10% of homes are valued at R6 million to R12 million (and most of these are in Lonehill and Broadacres), but here again the strong demand is for units in the R1,5 million to R2,5 million category. Although the Rawson Property Group and other agencies continue to do good turnovers here, they could be a great deal higher if more stock was available.
This stock shortage (and other factors such as the large number of people not qualifying for home loans) has, said Goosen, led to fast rises in rents whenever a new tenant is signed. The area’s ‘typical’ sectional title units are renting out at R5,000 to R8,000 per month and freestanding homes at R15,000 to R20,000 per month.
“Taking all the factors mentioned into consideration,” said Goosen, “I cannot think of a better area throughout Gauteng in which to buy a home at present.”